Spectrum Brands, Investors’ $39 Million Settlement Rejected

Spectrum Brands Holdings Inc., related companies, and their investors must try again to work out the details of a proposed $39 million class settlement after a federal judge in Wisconsin blocked the deal from moving forward.

Investors reached a deal after accusing the consumer goods conglomerate of misleading them about the success of a facilities consolidation plan. But the lead plaintiffs didn’t provide adequate notice to some stock purchasers and aren’t adequate representatives for them, the U.S. District Court for the Western District of Wisconsin said.

The company now known as Spectrum formed after a 2018 merger between ...